Gold set for weekly decline; market awaits more US data
Fri Nov 29 2024
Gold traded flat on Friday and was poised for a weekly decline as markets awaited key U.S. economic data, which are expected to shape the Federal Reserve's monetary policy outlook and influence bullion demand.
FUNDAMENTALS
* Spot gold fell 0.1% to $2,637.71 per ounce, as of 0006 GMT. Bullion was down nearly 3% so far this week.
* U.S. gold futures edged 0.1% lower to $2,636.80.
* Key U.S. data scheduled for next week includes job openings, the ADP employment report and the employment report, all of which could provide insights into the Fed's rate cut trajectory.
* Trading was thin with U.S. markets closed on Thursday for the Thanksgiving holiday.
* Meanwhile, data on Wednesday showed progress in lowering U.S. inflation appears to have stalled in the past months, suggesting the Fed may proceed cautiously with further cuts.
* According to the CME Group's FedWatch Tool, markets currently see a 62.8% chance of a 25-basis-points reduction by the Fed in December.
* Geopolitically, the Israeli military said its air force struck a facility used by Hezbollah to store mid-range rockets in southern Lebanon on Thursday after both sides accused each other of breaching a ceasefire that aims to halt over a year of fighting.
* Additionally, Russia on Thursday unleashed its second big attack on Ukraine's energy infrastructure this month, triggering deep power cuts across the country.
* Gold is often regarded as a safe-haven investment during periods of economic or geopolitical instability, including trade wars.
* Spot silver shed 0.1% to $30.23 per ounce, platinum rose 0.1% to $932.55 and palladium was steady at $975.68.